Buyers and would-be investors often look to foreclosure sales to find real estate bargains. Sometimes newcomers to this market are surprised at how different purchasing a bank owned home can be.
In a conventional home purchase a buyer negotiates price, inspection issues & contract details with the properties owner- either with or without a Real Estate Agent representing them.They may have found the property through a Real Estate Agent, on the internet or in some other way like an open house, home magazine or through a yard sign. Once price is negotiated inspections take place and important issues are addressed between buyer & seller. After or around this time the buyer will be called into his or her attorney's office to sign contracts. Deposit money may be put down at this time. Once the buyer has secured his or her loan a closing is scheduled. The buyer does a walk-through of the property to ensure the owner has left the property in an acceptable condition for the buyer.
When it comes to foreclosed properties there are some differences to be aware of.
+ Foreclosed homes are bank owned & are sold through either a Real Estate Company or Public Auction.
+ Foreclosure homes are usually “as-is” sales. This means that buyers cannot negotiate for the cost of needed repairs, as they may do in a traditional home purchase.
+ If something looks "to good to be true" this may be the case. Some bank owned properties have sat vacant for long periods of time before being put on the market for sale. A property that is not maintained may have substantial and costly defects. Be aware that mold, freeze-damage or other potential problems could exist.
+ Banks may not be required to disclose defects and you may be asked to sign an "As-Is" addendum along with a Contract when you make your offer
The foreclosure market can be competitive and it is often dominated by experienced real estate investors. Armed with the right information and the right Real Estate Agent you can make informed bids and find the best home at the best deal.
To reap the benefits of buying foreclosed properties be certain to consult a Real Estate Professional skilled in the purchase of bank owned properties. Additionally you will want to hire the services of a reputable, certified home inspector, to address questions about specific issues. With the right team on your side you'll be well-informed and confident that you are proceeding with the purchase that is right for you.
If you are interested in purchasing a foreclosed property and would like the guidance of a Realtor who has successfully closed numerous bank owned properties in Connecticut I would be interested in speaking with you about your real estate plans. Feel free to contact me anytime at (203) 442-3873 or email PETERTESTA@yahoo.com - I look forward to hearing from you!
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